To me 'real chi' is proper body mechanics. For example; the punch worked well because the user had a good base, used hips, proper technique etc, as opposed to the gathering of energy into the palm of your hand BS.

It WAS an outdated concept decades ago.
Now it's an excuse for anigeeks to play dragon ball z and think it's real. It's a way for crappy teachers to maintain control over their students without having to fight. It's a reason that many CMA people won't drop outdated training methodologies and improve.
In a word: Bullshit.

There's no option for what chi actually is. This is not a multiple guess, postmodern subjective ideal of what does it mean to you. Chi is breath.

If this is so, why is breath not used instead to avoid confusion? Also, I have seen references to focusing chi/qi/ki into parts of your body, i.e. your hand. How does one focus one's breath into one's hand? Or are chi, qi, ki not synonymous like I thought they were?